One New Short Position And One Stock I Am Adding To My Existing Short Position

September 17, 2007

None of these shorts deserve a huge position. My short in BNI is large enough that I am not adding a whole lot here. I am just adding back what I recently covered. I hope the whipsaw nature of this stock is over and hope BNI is ready to move lower. But, most of you know how I feel about hope and stocks.

new short position: RNT

RNT is failing at the 50 day moving average, on extremely large volume. After putting in one top in February, RNT rallied back to the old highs in June and ended up putting in a double top as prices soon crashed below the 50 and 200 day moving average. Since then, the stock has rallied right back to the 50 day moving average on low volume. After drifting around for a while, selling now appears to be back in vogue, with BOP back in the red zone and the stock putting in a poor reversal on heavy volume intraday. Cut your loss with a close above the 50 day moving average, if the stock does not move lower immediately.

adding to existing short position: BNI

BNI is failing right at the 50 and 200 day moving average, on very strong volume. After putting in a series of tops in April, May, and July, BNI has finally slipped below the 200 day moving average and has been unable to get back above the 50 day moving average or hold the 200 day moving average. The moneystream line has been showing extreme weakness and the RS line is confirming the lower highs and is now ready to hit lower lows before price (a negative divergence). The weekly chart clearly shows that there is some heavy distribution hitting this stock the past five weeks as volume has been well above average and is some of the heaviest since 1995. So there is some real selling going on here. The dividend is only 1.6%, making this a good short with a tiny dividend to pay. Cut your loss with a close above the 50 and 200 day moving average, if the stock does not move lower immediately.

Last 5 posts in Free Archives Shorts

Posted by Joshua Hayes | Filed Under Free Archives Shorts 

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